Pangolin scales deal raises questions

By Gerald Tenywa

Everything that did not have to go wrong went wrong with the deal to export seven tonnes of pangolin scales.

The deal, which was offered by the Uganda Wildlife Authority (UWA) to Smith Ewa Maku of Smico should have been negotiated and trophy fees agreed before a six months licence to export the pangolin scales was issued to Maku on July 13, 2014.

Under the deal, UWA sold 131kgs of pangolin scales. In addition, Maku was also given permit to export pangolin scales from other sources on the market. He eventually exported seven tonnes.

But five months after Maku was given the licence, UWA, was demanding for payment of the trophy fees for the pangolin scales.

“UWA has noted that you have not submitted returns for the exports you have so far made in relation to export licence issued to you in July 2014,” stated Asa Kule Musinguzi, a wildlife co-ordinator at UWA, in a letter dated December 19.

“We have also noted with concern that you have not paid trophy fees worth $51,278 (sh133m) for the same licence.”

Asked why UWA billed Maku after he had exported the pangolin scales, Jossy Muhangi, UWA’s public relations manager, said Maku had contested the rates leading to protracted discussions at the beginning of the year.

But he did not explain whyBMaku was contesting the rates five months after the licence was offered.

Muhangi could also not explain the rates UWA was charging that Maku was contesting.

Muhangi said that during a meeting held on February 12 the trader agreed to pay $51,278 (sh133m) to UWA.

But other sources within UWA say licences and permits are only drafted after UWA and the private sector players have agreed to pay fees.

“It is an anomaly because Maku is holding a recognised licence and once it is issued, it cannot be contested on grounds of charges,” the source said.

Some of the pangolin scales impounded by UWA officials last year

Was the payment an afterthought?

As a practice, according to Vincent Opyene, head of the Natural Resource Conservation Network, UWA always provides services after advance payment.

“Why was UWA not bothered about payment for the trophies sold in July until December after New Vision had run a story about the deal?” Opyene asked.

Furthermore, Maku or his company, Smico, that was offered to export the pangolin scales, do not appear anywhere on the UWA’s list of debtors, according to the audited report for January, 2015. What happened? Was the demand note, sent to Maku on December 19 authored by a few people who wanted to keep the money to themselves?

“There appears to have been a move to hide the transaction from UWA’s finance department,” a source argued.

Maku said he had made payment for the trophy fees amounting to $5,537 (about sh18m) for 131kg of pangolin scales purchased from UWA’s stores.Muhangi, in a separate, interview said the 131kg from UWA’s stores were sold to Maku at $50 (sh149,750) for every kilogramme, which totals to $6,550, meaning that Maku did not also clear the money owed to UWA for the pangolin scales sold directly from UWA’s stores.

Muhangi said Maku gave UWA a post-dated cheque worth $51,278 (about sh133m) in June last year. “The cheque did not work out,” said UWA’s publicist.

“The bank demanded that the amounts be broken down into different cheques not exceeding $10,000 (about sh28m),” Muhangi explained.

The export of seven tonnes of pangolin scales comes at a time concerns are being that pangolins, which are regarded as rare animals (under appendix 2 of CITES), are being pushed into extinction.

The blame is being heaped on the illegal trade in pangolin scales.

According to the Wildlife Act, pangolins are endangered animals. The pangolins are listed under the schedule A of the Game Preservation and Control Act, a colonial wildlife law. It is only the minister who can grant permission to hunt animals listed under schedule A.

Pangolin scales at sh11b

A kilogramme of pangolin scales is worth $600 (sh1.6m) on the international black market. The seven tonnes exported by Maku could earn $4.2m (about sh11b) on the black market.

China, among other Asian countries, is the biggest destination for the scales.

Pangolin scales are sometimes used as a substitute for ivory.

UWA has been a subject of investigations, by the Inspectorate of Government, over the theft of 1,300kg of ivory from the agency’s stores.

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